RFID

1
RFID
Group Number 5 Presentation Date 4/30/2008

• Group Members
• Katherine Hughes, Justin Behm, Alan Gilewski,
  Robert Worth, Daniel Crucz, Michalis Kritikos

2
Presentation Overview

• Introduction
• Business Applications
• Advantages of RFID
• Disadvantages of RFID
• Conclusion/ Recap
• Quiz and Questions

3
Why is RFID important to you?

• Technology is continuously improving and changing
  the business world.
• Important to be aware of different technology
  options.
• RFID is used in our everyday world.
• RFID could one day be an essential part of your
  business or workplace.

4
Goals to Achieve

• Detailed description and definition of RFID
• Make audience aware of various advantages of the
  technology
• Learn the various disadvantages of the RFID
  technology
• Discuss the business applications
• The future of RFID based on research and the
  teams opinion

5
RFID Stands For

• RADIO
• FREQUENCY
• IDENTIFICATION

6
RFID Defined

• A technology which incorporates the use of
  electromagnetic coupling and radio waves to
  identify an object or person.
• Made up of several components embedded into
  business practices to improve and transform key
  supply chain processes.
• Provides a distinctive identifier for objects
  (similar in its purpose to bar codes or magnetic
  stripes on the back of credit cards).
• RFID must be scanned in order to retrieve the
  needed information

7
History and Development

• First Developed during WWII.
• Created from radar experiments.
• British needed to identify their own planes
  friendlies from French planes foes.
• Actual year of invention was 1948.
• For years after first development a great amount
  of research on RFID was done until it was
  actually used in commercial application.

8
History Of Use

• After WWII security and safety was needed due to
  the use of nuclear materials, which lead to
  further developments in tagging.
• RFID started being implemented in the 1970s.
• During this time the cost of each tag was
  excessive and the use was very limited.

9
RFID in the 1980s

• The 1980s bought a great amount of development.
  In 1987 Norway had implemented the first
  successful toll collection system.
• Toll systems were considered to be the
  breakthrough product for RFID.
• In 1981 railroads began implementing RFID as a
  solution for the environment of their industry.
  The railroads used RFID to keep track of rolling
  stock. The radio frequency was able to go a
  travel a longer distance, and had the ability to
  read through snow, fog, dirt, and direct
  sunlight. Before RFID the railroads were
  implementing bar code technology.
• In 1988 the main effort of RFID shifted to new
  applications to do things such as improve
  performance, reduce costs and reduce size

10
1990s to Present

• From the 90s to the present RFID manufactures
  are in deep competition to be the company to sell
  the cheapest, smallest and most reliable RFID
  device.
• ( Business Applications Section will talk more
  about RFID in present use.)

11
How Does RFID Work?

• RFID is comprised of three major components
• ? An antenna or coil
• ? A transceiver (with decoder)
• ? Transponder (RF tag)

12
RFID In Use
13
Antenna or Coil

• The antenna emits radio signals to activate the
  tag and to read and write data into the tag.
• The antenna is the channel between the tag and
  the transceiver, thus it controls the data
  attainment and communication.
• The antennas are available in many different
  shapes and sizes. For example an antenna can be
  built into a doorframe in order to collect data
  from people walking through the door.

14
Antenna and Coil Continued

• The electromagnetic field, which the antenna
  produces, is constantly present when multiple
  tags are continually expected.
• If constant detection is not needed the field can
  be activated by a sensory device.
• Depending on the antennas needs you could opt to
  make it a handheld or a fixed-mount device.
• Often the antenna is packaged with the
  transceiver and decoder.

15
RFID ANTENNAS
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Transceiver (with decoder)

• The reader releases radio waves in ranges from
  one inch to 100 feet or more. The range depends
  on its output power and the radio frequency used.
  
• When the RFID tag passes through the
  electromagnetic field it will then detect the
  readers activation signal.
• At this point the reader will decode the data
  programmed in the tags circuit.
• Finally, the data is passed to the host computer
  to be processed.

17
RFID READER
18
Transponder (RF Tag)

• RFID tags are the heart of the RFID system
  because they store the information that describes
  the object being tracked.
• Tags are classified according to their abilities
  
• ? Active
• ? Passive
• ? Read-Only
• ? Write-Once
• ? Read-Write

19
Active Tags

• Contain a battery that runs the microchips
  circuitry.
• Tag is able to send a stronger signal to the
  reader due to battery.
• Allows a read range of about one hundred feet.

20
Passive Tags

• Passive tags contain no batteries.
• Passive tags get power from a reader.
• Readers send electromagnetic waves that
  produce a current in the tags antenna which then
  powers the microchips circuits.
• A passive tags read range is approximately thirty
  feet.

21
Read-Only Tag

• Read-only contain data such as tracking numbers.
• These tracking numbers are usually serialized and
  pre-written onto them by the tag manufacturer.
• Read-only tags are usually the least expensive
  because information can not be added onto them as
  they move through the supply chain.

22
Write-Once Read-Write

• Write-once tags allow a user to write information
  into the tag one time during the production. The
  information can be something like a batch or
  serial number.
• Full read-write tags allow for new data to be
  written to the tag as it is needed. These tags
  also allow for original data to be written over.

23
RFID TAGS
24
Business Applications
25
Asset Tracking

• RFID tags applied to company assets which are
  stored away
• Companies then use the tags and RFID technology
  to locate assets when they needed
• The location of the assets are accurate within 10
  feet
• Think of our Libraries
• RFID tracks library books that are checked out or
  in.

26
RFID Utilized in Manufacturing

• Manufacturing companies utilize RFID to track
  parts
• Work-in-Progress tracking made easier
• Reduce defects
• Increase of throughput
• Manage production of different versions of the
  same product
• Assists in tracking part arrivals
• Follows parts along assembly lines

27
RFID Used In Retail

• Assists in identifying which products need to be
  restocked
• When shelf supplies are low store will be able to
  quickly identify where product is needed and
  where they will obtain the needed product
• Overall, allows for higher customer satisfaction
• Helps automate checkout lines
• Reduces line waiting times

28
Payment Systems

• Helps speed up processes where payments are
  necessary.
• Most commonly found on toll ways
• Used in collecting tolls, which we know in
  Illinois as the IPASS system.
• More convenient for drivers and eases the flow of
  traffic.
• Mobil Speedpass

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Security and Access Control

• Companies use RFID to assist in limiting access
  of unauthorized personnel to information among
  other things
• Confirms information is only being viewed by
  those who are allowed to view it.
• Added value to Electronic Article Surveillance
• Commonly used in stored as anti-shoplifting tool
  it signals alarm to go off.
• Control access to gates communities (ex Crystal
  Tree, in Orland Park)
• Controls access in Airports (OHare Airport)

30
Case Study 1 Victory Land Group

• A supplier company for Wal-Mart
• Knew that it had to keep up with demand and
  competitors
• Implemented Electronic Product Code (EPC) and
  RFID smart labels
• Constructed a new distribution center with RFID
  capabilities
• Zebra and R4 Global Solutions, a leading RFID
  systems integrator worked with VLG on the
  implementation and since then has worked with a
  dozen Wal-Mart suppliers.
• Results
• VLG is able to go onto Wal-Marts Retailer
  Link Supplier website to track the progress of
  its tagged merchandise.
• VLG uses the information for its own planning.
• Considering more ways to use RFID internally.
  
• Began discussing RFID technology with its own
  suppliers

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Case Study 2 Federal Express

• Federal Express (worlds largest express parcel
  delivery company)
• Delivers 3.2 Million parcels daily and operates
  over 42,500 vehicles worldwide.
• Companys couriers use an automatic keyless entry
  and ignition system which uses RFID transponders
  embedded into a wristband.
• Results
• Personnel do not have to worry about juggling
  and keeping track of their keys when delivering
  packages
• Carriers are more productive on their routes.
• If wristband is misplaced, the RFID system can
  reprogram a new code within a matter of seconds.
• When carrier places his or her band within 6
  inches of the reader, the door will unlock,
  keeping all other doors locked in order to
  prevent unauthorized entry.

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Advantages
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Advantages of RFID

• ? Reductions in Costs
• ? Reduction in Inventory and Theft
• ? Improves Forecasting, Planning and
  overall customer experience

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Reducing Warehouse and Distribution/Point-of-Sale
Labor Costs

• Sensors allow for easier tracking of inventory
  with high accuracy.
• Point-of-Sale transaction times reduced
• Fraud minimized with RFID-enabled products.
• Overall, need for human labor is diminished as
  adoption of product increases, saving on labor
  costs.

35
Reduce Inventory Theft

• Accurate tracking of inventory helps maintain
  appropriate levels of inventory in stock.
• With theft accounting for losses equivalent to
  1.5 of sales, RFID keeps track of when or where
  an item went missing.
• Eliminating excess/missing inventory vital when
  trying to maintain a successful business.

36
Improve Forecasting/Planning and Minimize
Out-of-stock Conditions

• Eliminating out-of-stock conditions is made
  easier with RFID tracking
• Predict with higher accuracy the current levels
  of stock
• Better prediction in location of incoming
  shipments
• Maximize revenue
• Maintain high levels of customer satisfaction

37
Improve Overall Customer Experience

• Use of RFID and interactive kiosks can allow the
  merchant to extend offers to customers based on
  the contents of their carts.

38
Disadvantages
39
Disadvantages of RFID

• ? Cost
• ? Collision
• ? Failure

40
Cost of RFID

• More expensive than current technologies
• Cost of an RFID scanner is 500-2000
• Current cost of an RFID tag is between 7-15
• Cost of active tag is 10-50
• Barcodes cost less than 1 or around 3 with a
  security strip

41
Collision

• Signals can Collide when multiple signals are
  read at once.
• Those signals are either lost or are read with
  errors.
• At times the collision goes undetected for long
  periods of time.

42
Failure

• Total failure of the tag or reader
• 12-15 of all tags fail in their first reading
• Reader failure is common and requires replacing
  the reader.
• Barcode failure is extremely rare

43
Summary/Recap

• RFID- Radio Frequency IDentification
• A technology which incorporates the use of
  electromagnetic coupling and radio waves to
  identify an object or person.
• Provides a distinctive identifier for objects
  (similar in its purpose to bar codes or magnetic
  stripes on the back of credit cards).

44
Summary/Recap

• Important Business Applications
• ? Asset Tracking
• ? Manufacturing Companies
• ? Retail Stores
• ? Payment Systems
• ? Security and Access Control

45
Summary/Recap

• Advantages
• ? Reduction in Costs
• ? Reduction in Inventory and Theft
• ? Improves forecasting/planning and overall
  customer experience
• Disadvantages
• ? Cost
• ? Collision
• ? Failure

46
Importance to Our Lives

• RFID used in everyday living.
• Makes our lives easier (IPASS, Speedpass)
• Saves money and reduces theft to businesses we
  may work for currently or will work for in the
  future.
• Important to be familiar with and aware of
  current technology trends to keep a competitive
  advantage for ourselves and for our future
  employers.

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Quiz Question 1

• What is not a type of RF tag?
• A.) Passive Tag
• B.) Read-Only Tag
• C.) Passive-Read Once Tag
• D.) Write-Once Tag

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Quiz Question 2

• What is not one of the major components of RFID?
• A.) Transponder (Rf Tag)
• B.) Alkaline Battery
• C.) Antenna or Coil
• D.) Transceiver (With Decoder)

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Quiz Question 3

• What is not one of the major disadvantages of
  RFID technology?
• A.) Collision
• B.) Cost
• C.) Reduction of Inventory
• D.) Failure

50
Bibliography

• The History and Development of RFID Technology.
  Online. 12 April 2008. http//www.emory.edu/BUSINE
  SS/et/rfid/timelinr.html
• A History of Development. Online. 13 April 2005.
  http//www.slais.ubc.ca/COURSES/libr500/04-05-wt2/
  www/T_Gnissios/history.htm
• How RFID Works. Online. 2 April 2008.
  http//www.technovelgy.com/ct/Technology-Article.a
  sp?ArtNum2
• Leeming, Greg. RFID Overview. 8 September 2008.
• Technologies RFID/ What is RFID. Online. 12
  April 2008. http//www.aimglobal.org/technologies/
  rfid/what_is_rfid.asp
• Experts On Demand. 19 December 2005.
  http//expertanswercenter.techtarget.com/eac/exper
  tAnswer/0,295208,sid63_gci1153220,00.html
• What you need to know. September 2007.
  Transponder News. April 3, 2008.
  http//transpondernews.com/trendfut.html.
• Zebra and R4 Global Solutions make EPC
  compliance labeling fast and simple for Victory
  Land Group Victory Land Group Case Study, Zebra
  Technologies. Nov 8, 2005
• Security Access and Convenience for Express
  Parcel Couriers Texas Instruments Incorporated.
  June 30, 2004.

51
Bibliography Continued

• What Every Internal Auditor Should Know About
  RFID. Knowledgeleader. June 2008
• The Ecosystem What RFID Is. Online. Volume 09
  Issue 03. 3 August 2005. http//www.intel.com/tech
  nology/itj/2005/volume09issue03/art09_rfid/p03_eco
  system.htm
• What is RFID? Online. 2 April 2008.
  http//www.technovelgy.com/ct/Technology-Article.a
  sp?ArtNum1
• RFID JOURNAL The Worlds RFID Authority. April 2,
  2008. http//www.rfidjournal.com/
• Frequently Asked Question. RFID JOURNAL The
  Worlds RFID Authority. April 2, 2008.
  http//www.rfidjournal.com/faq/20
• What you need to know. September 2007.
  Transponder News. April 3, 2008.
  http//transpondernews.com/trendfut.html
• Ilie-Zudor, Elisabeth Kemeny, Zsolt Egri,
  Péter Monostori, László. THE RFID TECHNOLOGY AND
  ITS CURRENT APPLICATIONS. September 2006.
  Computer and Automation Research Institute,
  Hungarian Academy of Sciences. April 3, 2008.
  www.sztaki.hu/egri/publications/Ilie2006.pdf